Proposition 22 passed in California this month, overturning the state’s worker classification law that said all gig-economy workers must be treated as full-time employees. Those same workers are now officially independent contractors again and, potentially, for good. This means that they do not receive the same benefits as full-time employees, but they also do not have the same obligations as full-time employees. They decide when they work, where they work, and for how long they work.
Proponents of this type of system argue that if that kind of freedom and flexibility is not what you’re looking for, then this is not the industry for you. It’s as simple as that. However, that’s not enough to stop opponents from continuing to infiltrate the industry on behalf of ‘worker rights.’
At what point does “securing worker rights” end up hurting workers more? Specifically, in the case of the gig economy, the answer is when the company files for bankruptcy; which is exactly what happened in Canada when Foodora, a food-delivery company, closed after being forced to recognize its workforce as employees and provide all the benefits that come with it. This business model simply isn’t sustainable that way. It’s too expensive.
As far as the US is concerned, rumor has it that Uber intends to push for similar legislation as Prop 22 in other states. Meanwhile, the Department of Labor is working on its own worker classification regulation.
